The mobile-data business of Philippine Long Distance Telephone Co. (PLDT) will become the biggest contributor to the firm’s earnings in the next few years, as more and more Filipinos migrate to the digital lifestyle through their smartphones.
Given the steady pace of smartphone acquisition and the increasing popularity of mobile surfing, the dominant mobile carrier’s revenues will be heavily boosted by its mobile-data business, its chief honcho said.
“Mobile data, right now, is about 16 percent to 18 percent of the revenue mix. It will move toward 50 percent in the next few years,” PLDT Chairman Manuel V. Pangilinan said in an interview.
A quick check at the firm’s financial report for the first nine months of 2014 showed that consolidated broadband revenues of the PLDT Group, including earnings from wireless brands Smart and Sun, amounted to P19.5 billion, a 16-percent increase from the year prior.
This is reflective of the trend in the global telecommunications industry, wherein players bank on mobile data for more revenues due to the popularity of smartphones.
Apple, Samsung, LG and other smartphone producers are launching here and there their flagship mobile devices, enticing more Filipinos to upgrade to the latest and the most affordable phones in the market. The full potential of smartphones, as the industry puts it, can only be maximized with a decent Internet connection.
Now, the telecommunications business of Pangilinan is beefing up its network, earmarking P36 billion to upgrade its mobile infrastructure.
It has launched products and promos aimed at expanding its mobile-data business. PLDT has also partnered with content providers to grow the said business segment.
The corporation’s net income slid by 14 percent, to P7.9 billion in the third quarter of 2014 from P9.2 billion in the same three months the year prior. The first nine months of the year, however, saw a slower decline in PLDT’s net income. It booked a P27.96-billion net profit for the period under review.